Zoho keeps doing things the rest of Indian tech has decided are impossible.
They just built its own computer server, but the way they did it is so fascinating.
First, let's understand what a server is. It is the big computer sitting in a data centre that runs your apps. Every time you use Gmail or WhatsApp, a server somewhere does the work.
Almost every server running in India is designed by foreign companies. Indian firms just buy them.
Zoho decided to design its own. And I cannot stop thinking about how they went about it.
They set up the project in Nagpur.
Now, Nagpur had no experienced hardware engineers at all. So Zoho did not hire experts from Dell or HPE. They started a training programme called SETU, hired freshers straight out of engineering colleges, and gave them one hard problem to work on for five years.
Think about that. Every big IT company in India complains that freshers are unemployable.
Zoho took those same freshers, in a smaller city, and got a working server out of them. They have filed more than five patents on the designs, and the key parts were designed fully in-house and put together by Indian manufacturing partners.
So the talent has always been there. A company patient enough to train people was the missing piece.
But why build your own server at all?
Zoho runs all its apps on its own machines. Until now, every server they bought from a foreign company included that company's profit and licence fees.
By designing their own, they get the same performance while using 12 to 18% less electricity, and the total cost of owning each machine drops by 20 to 30%.
With a few hundred servers, that saving is small. But Zoho plans to move all its apps worldwide onto these machines.
Also there is an AI angle. Running AI is expensive because AI needs huge computing power. Zoho's plan is to run smaller, focused AI models on its own servers in its own data centres, to manage costs.
Most companies rent computing power from Amazon or Google but Zoho is attacking the bill at the machine level.
The timing is important too.
In 2023, the Indian government put restrictions on importing hardware like servers. Zoho had already started its server team in Nagpur back in 2020.
Three years before the government rule arrived, Zoho was preparing for a world where India cannot simply import its computers.
So, they moved on their own belief.
The best part is that the design is fully owned in India, Zoho does not depend on any foreign company for security checks, software updates, or licences.
If some country imposes sanctions or a licensing fight breaks out tomorrow, nobody abroad can switch off Zoho's machines.
Zoho has been honest about the fact that the chip inside the server is still an Intel processor, and Intel helped in the development.
That is fine. Every country that builds hardware starts this way. China's server companies started by assembling other people's parts and slowly went deeper. The chip is the next decade's problem.
What I love most is how Zoho-like this whole thing is.
> This company took no investor money in 25 years.
> It opened offices in villages and small towns.
> It hires school students and trains them.
> It built its own browser and its own AI model.
> Now its own server.
Now compare this with the big Indian IT companies. TCS, Infosys, Wipro, HCL.
Together they earn over $250 billion. They have managed the world's computers for decades. But not one of them designed a server of their own.
Even the name is a nice touch. Nathu La is the mountain pass in Sikkim through which India traded with the world on the old Silk Route.
Naming your first server after a trade gateway, while building it so India depends less on imported tech, shows someone thought about this for years.
They have a few hundred servers running today and want 2,000 by the end of the year. Small numbers. But the team is trained, the design works, and the path is proven.
Indian software companies spent 30 years building on other people's machines.
One of them finally built the machine. :)
We just launched something we've been quietly working on—Nathu La, our very own indigenously designed server, with every bit of intellectual property owned right here in India. 🚀
Built by our engineers in Nagpur, optimized for AI inference, and designed to power Zoho's own applications, Nathu La is our most tangible step yet toward owning our technology stack end to end in ways that directly benefit our customers.
Read the full story here 👉
zurl.co/fjCv3